GoldPrice

Good morning, traders. Welcome to our weekly preview of the next five trading days, with a focus on the economic data and market narratives most likely to impact the price of gold, as well as the Dollar and other correlated assets.

Happy Friday, traders. Welcome to our weekly market wrap, with a focus on the news and data that most impacted gold prices as well as trading for the US Dollar and other correlated assets.

On the same day that the US government reported an annualized contraction of 4.8% for the American economy in Q1, the Federal Reserve concluded their first two-day meeting since drastically slashing interest rates to near 0% and initiating a raft of monetary operations and support facilities aimed at helping America’s people and businesses weather the current crisis. Chairman Jerome Powell and that Fed’s FOMC, as was broadly expected, announced no new actions following the meeting but used their core communications channels to affirm the central bank’s commitment to ultra-low interest rates and an un-banded program of asset purchases in support of the economy and its eventual recovery.

Good morning, traders. Welcome to our Monday preview of the week ahead, focusing on the economic data and market narratives most likely to have an impact on gold and precious metals pricing, as well as the US Dollar and other key correlated assets.

Happy Friday, traders. Welcome to our weekly market wrap, focused on the news and economic data that means the most for the gold market as well as the Dollar and other correlated assets.

The spread between the spot price of gold—that is, to buy/sell physical gold for immediate delivery—and the price of an active futures contract for gold—a paper trade guaranteeing physical gold at a later date—is typically fairly efficient. That is to say, the two prices are normally within a few Dollars. In late March of this year, as the Covid-19 pandemic crisis firmly wrapped itself around the global economy, that same spread (often referred to by traders as the EFP, or Exchange-for-Physical) blew out as the gold futures price rose an unreal $80 above spot. The market has been making efforts to moderate the drastic dislocation, but last week the gap was still $35/oz; even in this morning’s trading the EFP is roughly $15.